Most Asian markets rose Tuesday, with Chinese shares climbing amid hopes upcoming data might show a moderation in monthly inflation, while Japanese stocks gained on some upbeat results and a weakened yen.
In Japan, the Nikkei 225 average climbed 24.38 points, or 0.3%, to 9,818.76
Markets in Hong Kong and Seoul had the day off
Japanese shares were propped up by an 11.8% jump in shares of Sumitomo Heavy Industries Ltd. and a 3.7% advance in those of Toshiba Corp. after both reported strong earnings. Chubu Electric Power Co., which bowed to government demands to shut down its only nuclear plant, rose 1.9% to recover some of Monday’s steep loss.
The yen’s weakness supported shares of some exporters, with Sony Corp. rising 0.3% and Sharp Corp. gaining 0.4%.
Shares of Toyota Motor Corp. added 1.7% as investors awaited the company’s fiscal year results, due Wednesday. The gains were aided by a report in the Nikkei newspaper that the company’s production will recover two or three months earlier than expected from the impact of the March 11 earthquake.
In Sydney, the drop came amid worries about the impact of the strong local currency on corporate earnings. Trading volumes were thin as investors looked to Australia’s Budget later in the day as well as China’s inflation data due Wednesday.
Shares of Brambles Ltd. fell 1% and James Hardie Industries SE gave up 2.3%; both are considered to be sensitive to the strong Aussie dollar.
Nufarm Ltd rose 5.2% on news that Japan’s Sumitomo Chemical Co. had increased its stake in the company to 21.7% from 20% and will buy a further 1.3%.
In foreign exchange markets, the euro traded in a tight range against the U.S. dollar. Demand for the euro continued to be undermined by concerns about Greece’s sovereign debt crisis.
The euro was at $1.4348 U.S. from $1.4364 U.S. in late New York trade on Monday, and at 115.75 yen from ¥115.36. The dollar was at ¥80.69 from ¥80.34.
CHINA
Shanghai’s CSI 300 Composite Index gained 23.46 points, or 0.8%, to 3,153.22
The increase on Chinese bourses came a day before the scheduled release of key consumer price index-based inflation data for April, which analysts say could set the pace for further monetary tightening.
The data are closely watched in the region. Concern that Beijing might increase interest rates or the amount banks must set aside as reserves to cool prices, has often weighed on Chinese as well as some other markets in the past.
April CPI is expected to ease to 5.2%, according to a survey of economists by Dow Jones Newswires.
Several interest-rate sensitive Chinese stocks advanced during the session. Shares of Agricultural Bank of China Ltd. added 1.4% and Poly Real Estate Group Co. rose 1.3%.
Some power sector stocks overcame early weakness to extend their advance, driven by some expectations that a short supply of electricity expected this summer might encourage Beijing to allow them to increase tariffs. Shares of Datang International Power Generation Co. rose 2% and Huadian Power International Corp. added 0.7%.
Investors looked past other data released Tuesday, showing China’s trade surplus surged to $11.4 billion U.S. in April, easily topping market expectations on robust exports.
In other markets;
Taiwan’s Taiex Index slipped 12.20 points, or 0.1%, to 9,023.28
Singapore’s Straits Times index added 19.32 points, or 0.6%, to 3,156.26
New Zealand’s NZX 50 tacked on 9.76 points, or 0.3%, to 3,528.76
Australia’s S&P/ASX 200 moved lower by 31 points, or 0.7%, to 4,725.80
